WebTrader cost-cutting ideas?

Good day All.

Thought we could share ideas on how one can minimize the costs of Trading on the Webtrader platform, since personally I'm finding the 'cost factor' alone to be stretching the overall value proposition far too thin - if not obsolete. As such, I thought i'd ask around and see how others are dealing with this issue.

As I'm sure many have noticed, SBK seems to be playing the role of an 'intermediary broker' for Saxo Bank here, and naturaly this means a wide range of the same old 'third party' issues:

I'm getting a basic level white-label version of the 'Saxo Trader Go' platform - with far less features than the original (e.g. No Trade Signals, no Saxo Live Squawk, less indicators & advanced trading tools, etc.)

I get wider spreads on WebTrader than with Saxo direct, Dukascopy - or any other competitive international retail broker for that matter (e.g. EUR/USD @ 2.0 pips vs 0.5pips for the exact same Trade)

Fom this standpoint alone, I fail to see why a Trader with a >R10k trading account would go for Webtrader... (any pointers here would be highly appreciated!) - especially since Webtrader consultant also dont seem to understand the competitive advantage of their own platform.

My main question though has to do with finding the most cost-effective way of making Deposits and Withdrawals into & from my Webtrader Account.

Scenario: I'm a South African, living in SA - but my Webtrader Account is a USD account

Deposit costs

To deposit R150k into my Trading account - I'm always advised by Webtrader consultants to just go into a Branch.

Bloomberg USD:ZAR rate is 1:12.85 but at the Branch I only get a 13.30 spot rate (In addition to other charges)

So in my account I will now have $11 278.20 instead of $11 673.15

That means I've spent about R 6500.00 (incl. additional costs) on 'Webtrder admin costs' before I even start trading !

Withdrawal costs

After making $2000 from trading the USD/ZAR pair (with all the pain-staking issues listed above). I decide to withdraw all my funds, including the profits - and deposit them into my local savings account.

SBK Webtrading team suggests that I log a withdrawal request (with a 48 business hrs resolution time)

The funds will be converted from USD to ZAR (at 'whatever' the rate will be in 4days !) and deposited into my Local savings account.

If Bloomberg USD:ZAR rate is 1:12.85 (on day 4); SBK will give me a conversion rate of 12.40 (in addition to other charges, again)

So my new account balance ($13 278.20) will be R 164 649.68; instead of R170 624.87

Once again I have to spend about R 6500.00 (incl. additional costs) on Webtrader admin costs before I even access my funds !

So, in essence - I actually have to spend about R13 000.00 (+/- 9.0% of my initial capital) just to deposit and withdraw funds into & from my Webtrader account !!!

Re: WebTrader cost-cutting ideas?

Very good observation. I have been looking at such alternatives. Especially lately where it is advised to keep some money offshore. And I have come to the same conclusion. The cost of these types of accounts are so high! It looks like it is not viable for smaller amounts (< 100k Rand). Others require a minimum amount to start with.

Re: WebTrader cost-cutting ideas?

Although your concerns below are certainly important, we at Standard Bank Webtrader are unable to advise with regards to the transfer costs to and from the account.

These SWIFT fees and spreads on the exchange rate would need to be discussed with the branch/bank concerned. Alternatively you may contact the international banking help desk on 0860 123 006 in order to ascertain if these exchange rates can be negotiated.

We trust you find this in order.

Please do not hesitate to contact us on 0860 121 555 if you require any further assistance with the platform itself.

Re: WebTrader cost-cutting ideas?

You can forget about them doing anything about thier horrendous IT. They made imrpovements to the stability but they still can't be bothered to fix simple things. You can log calls till you're blue in the face but it never gets resolved. The only comfort I get from this platform is that they're the cheapest for futures trading.